We have set objectives for Growth, Balanced, Conservative and Cash in order to set the appropriate investment strategy for these funds and help monitor their performance. You’ll find more information about the objectives below the tables and in our statement of investment policy and objectives.

Returns by option

Returns and objectives for periods ended 30 June 2021 (after tax and fees). Returns in brackets are negative.

Growth

Objective: Consumer Price Index (CPI) + 2.75%

CPI

Objective
(CPI + 2.75%)

Return

Return vs objective

1 year

CPI

3.34%

Objective
(CPI + 2.75%)

6.09%

Return

23.87%

Return vs objective

+17.78%

3 years
(average per year)

CPI

2.18%

Objective
(CPI + 2.75%)

4.93%

Return

8.81%

Return vs objective

+3.88%

5 years
(average per year)

CPI

1.96%

Objective
(CPI + 2.75%)

4.71%

Return

9.69%

Return vs objective

+4.98%

10 years
(average per year)

CPI

1.38%

Objective
(CPI + 2.75%)

4.13%

Return

9.40%

Return vs objective

+5.16%

Balanced

Objective: Consumer Price Index (CPI) + 2.25%

CPI

Objective
(CPI + 2.25%)

Return

Return vs objective

1 year

CPI

3.34%

Objective
(CPI + 2.25%)

5.59%

Return

16.74%

Return vs objective

+11.15%

3 years
(average per year)

CPI

2.18%

Objective
(CPI + 2.25%)

4.43%

Return

7.37%

Return vs objective

+2.94%

5 years
(average per year)

CPI

1.96%

Objective
(CPI + 2.25%)

4.21%

Return

7.75%

Return vs objective

+3.54%

10 years
(average per year)

CPI

1.38%

Objective
(CPI + 2.25%)

3.63%

Return

7.74%

Return vs objective

+4.01%

Conservative

Objective: Consumer Price Index (CPI) + 1.00%

Objectives change over time which is why the return vs objectives figures may not equal the return less the objective listed here.

CPI

Objective
(CPI + 1.00%)

Return

Return vs objective

1 year

CPI

3.34%

Objective
(CPI + 1.00%)

4.34%

Return

5.78%

Return vs objective

+1.37%

3 years
(average per year)

CPI

2.18%

Objective
(CPI + 1.00%)

3.18%

Return

4.31%

Return vs objective

+0.94%

5 years
(average per year)

CPI

1.96%

Objective
(CPI + 1.00%)

2.96%

Return

4.32%

Return vs objective

+1.15%

10 years
(average per year)

CPI

1.38%

Objective
(CPI + 1.00%)

2.38%

Return

5.13%

Return vs objective

+2.20%

Cash

Objective: S&P/NZX Bank Bills 90-Day Index after tax

Return

Return vs objective

1 year

Return

0.42%

Return vs objective

+0.20

3 years
(average per year)

Return

1.11%

Return vs objective

+0.27%

5 years
(average per year)

Return

1.37%

Return vs objective

+0.27%

10 years
(average per year)

Return

1.91%

Return vs objective

+0.30%

Objectives

Growth, Balanced and Conservative

Inflation erodes the value of your investment. The higher the rate of inflation, the higher the return needs to be to maintain the buying power of your savings. This is why the objectives for the three main funds are based on a margin over inflation (as measured by the Consumer Price Index). 

The other side of the equation is volatility or risk. The objective for each fund addresses the likelihood of negative returns both in terms of frequency and magnitude.

The timeframe included in each objective applies to the minimum time that an investor may have to invest in the option to achieve the objectives. The more growth-oriented the fund, the longer the timeframe. That’s because returns from growth assets can be expected to be more volatile from year to year than returns from income assets, which tend to be more consistent.

  • Growth aims to achieve returns of 2.75% above inflation over rolling 10-year periods, while keeping the risk of a member losing more than 20% after inflation in any one year reasonably small.
  • Balanced aims to achieve returns of 2.25% above inflation over rolling 7-year periods, while keeping the risk of a member losing more than 15% after inflation in any one year reasonably small.
  • Conservative aims to keep the risk of a member losing more than 5% after inflation in any one year reasonably small while typically achieving returns of 1.00% above inflation over rolling 3-year periods.

Cash

Cash is designed for short-term saving where the main consideration is preserving capital (avoiding a negative return). The objective for this fund is to provide a return broadly in line with that of the S&P/NZX Bank Bills 90-Day Index after tax. There is a very small probability of experiencing a loss in any one year. There is also a risk that the value of your savings may not keep with pace with inflation over time.

The S&P/NZX Bank Bills 90-Day Index is designed to measure the performance of a portfolio of bank bills. Bank bills are short-term securities issued by banks, maturing over 31 to 90 days.